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Philippine inflation slows to record 0.8% in July

Philippine inflation slowed to a record low of 0.8 per cent year-on-year in July on lower electricity, petrol and transportation costs, the government said on Wednesday.

PHOTO: REUTERS

[MANILA] Philippine inflation slowed to a record low of 0.8 per cent year-on-year in July on lower electricity, petrol and transportation costs, the government said on Wednesday.

The rate of inflation was within the central bank's forecast of 0.5 per cent to 1.3 per cent, but marked a steep fall from June's year-on-year rate of 1.2 per cent, according to the Philippine Statistics Authority (PSA).

Petrol, electricity and water prices decreased by 1.1 per cent last month while transportation prices declined 0.5 per cent. Inflation for food and non-alcoholic beverages slowed to 1.3 per cent, the PSA said.

The figures were released ahead of a central bank meeting on interest rates next week, with authorities under pressure to help spur slowing economic growth.

"We will see at our meeting next week if there is (a) need for any adjustments to our stance of policy," central bank governor Amando Tetangco said in a statement following the release of the inflation data.